MarketsFlow update for the last quarter!

Dear shareholders and clients of MarketsFlow,

I hope that this letter finds you in great spirits.

I wish to discuss some of the updates from the last quarter and briefly touch on the future for MF.

Whilst we have been updating our clients with weekly portfolio performance updates on our YouTube channel, I also admit that the investor communication has been slow in coming.

I can assure you that we have been making considerable progress in various areas which I will list below, and that the last quarter has been the busiest in the history of MF. I will be making a point that moving forward you will be receiving communication from me directly on a monthly basis if not more.

With that said, let me start off by talking about our technology systems.

Technology Systems:

As you are well aware that we pioneered the pooled capital portfolio structure for retail clients in the UK and the world. It was because of this innovative structure that we were able to offer the deposits from £10, and offer the same portfolio performance to each client whether they hold £100K with us or £10 in their investment account.

Our technology systems are of grave importance to us as they enable functionality around our operating model. From assignments to deposits/withdraws and daily portfolio performance calculations, we have a number of processes running daily which reconcile all of our portfolio data. Whilst we have successfully built one of the most complex bespoke systems, it has been arduous at times. I can report that we have successfully now deployed autonomous modules for the systems to help us scale.
This is very important milestone as we look towards our next phase of growth.

Traction:

We have seen impressive traction since our launch to acquire over 250 clients from our first soft-launch, with an average deposit of just over £4K and a total AUM of £1.4m and growing in the first 4 months. It is now time for us to push our marketing efforts to deploy our second soft-push strategy covering the referral marketing, and targeting our remaining waiting lists.

We will then follow it up with a hard push in terms of marketing efforts covering advertising on digital mediums including video and social media ads. We are also hiring a dedicated digital marketing resource which will work on the next phase of growth.

Portfolio Management:

We are very proud to have delivered annualised performance figures of 18-23% in our first 4 months of trading results. What is even more impressive is the volatility management. We have been continually producing our weekly portfolio performance videos for our clients and distributing on our mailing list every Friday. One of our key USP is the optimised performance of our portfolios which means, more of the upside of your portfolios and less of the downside.
We are working hard to deliver even better performance in the coming months. We plan to do so by harnessing our optimisation engine by dynamically updating the portfolio constructs, and our rebalancing strategy.

We are also planning on launching a futures portfolio which is aimed at delivering higher performance figures than the High Growth portfolio. Our goal there is to effectively manage risk to ensure that downside is limited.

App:

We see App as the core distribution model for our business. Whilst the bulk of the functionality of portfolio management gets delivered by our optimisation engine and MF back-end systems, the App truly makes it accessible for our clients. We are working on new features all the time, like allowing clients to easily switch portfolios, show allocations, statements and portfolio metrics etc.

The next phase will cover working on design elements to make the app slick, smooth and intuitive, as we scale the operations.

Holt:

I know that many of you are very interested in the Holt stake, and rightly so. I can confirm that Holt have taken a minority stake in MF at the post-valuation stage of our last crowdcube round of CAD 16.6m. I have been working closely with the Holt Accelerator in streamlining the business for launch in the US and Canada. In order for us to launch MF App in the US and Canada, we need to register our funds in the respective countries enabling us to market them to clients in North America. This is a very important region for us, and we are currently working on regulatory processes.

We will also be looking to synergise the AUM strategy with Holt as we look to scale our growth together.

MF Community channel:

We launched MF community as the thriving spot for our community to share all things relating to MF, their accounts, investments and anything in general. We hope that you are enjoying and will continue to use the community channel to discuss new and exciting topics.

Future:

As we look to the future, I am very proud of where MF has come to in terms of pioneering the launch of its MF range of portfolios this year, and making them accessible via its Apps on both iOS and Android.

We now are gearing up for scaling our traction in terms of the user numbers and AUM. This will require concentrated effort across content, marketing and advertising. We are also looking at our fee structure and rationalising them to be seen as the efficient Robo Advisor and digital wealth manager of choice.

I hope that you have an enjoyable weekend and look forward to my regular updates with you.

In the meantime if you have any ideas or suggestions please do get in touch with me directly: tom@marketsflow.com.

Best wishes
Tom Nash
CEO, MarketsFlow

6 Likes

Thank you for this update @tom_mf. Can I check whether the £1.4m total AUM mentioned is just for accessible portfolios or is it the total AUM across the business and across jurisdictions (including accessible portfolios)?